In the Federal Budget announced on the evening of 3 May 2016, the government announced an increase in the $80,000 tax threshold to help alleviate the effects of bracket creep. From 1 July 2017, the 37% tax rate will apply from a new threshold of $87,000.
So, here are some tables setting out the current rates for 2015/16 and the proposed new personal tax rates and thresholds for 2016-17 (including the 2% temporary budget deficit levy, which applies only to taxable incomes over $180,000 but excluding the 2% Medicare levy) and also what that means in terms of tax payable. As non-residents are taxed differently, we’ve also included tables showing the tax rates for foreign residents.
|
|
|
2015-16 |
|
2016-17 |
||
|
|
Threshold |
Rate |
Threshold |
Rate |
||
|
1st Rate |
$0-$18,200 |
0% |
$0-$18.200 |
0% |
||
|
2nd Rate |
$18,201-$37,000 |
19% |
$18,201-$37,000 |
19% |
||
|
3rd Rate |
$37,001-$80,000 |
32.5% |
$37,000-$87,000 |
32.5% |
||
|
4th Rate |
$80,001-$180,000 |
37% |
$87,001-$180,000 |
37% |
||
|
5th Rate |
$180,001 |
47% |
$180,001 |
47% |
||
With Medicare levy included, the top marginal rate is 49% through until 30 June 2017.
The current 2015-16 tax rates (including the 2% temporary budget deficit levy, but excluding the 2% Medicare levy) are as follows:
|
Taxable income ($) |
Tax Payable ($) |
|
0-18,200 |
Nil |
|
18,201-37,000 |
Nil + 19% of excess over 18,200 |
|
37,001-80,000 |
3,572 + 32.5% of excess over 37,000 |
|
80,001-180,000 |
17,547 + 37% of excess over 80,000 |
|
180,001+ |
54,547 + 47% of excess over $180,000 |
The proposed rates for the 2016-17 year (including the 2% temporary budget deficit levy, but excluding the 2% Medicare levy) are:
|
Taxable income ($) |
Tax Payable ($) |
|
0 - 18,200 |
Nil |
|
18,201 - 37,000 |
Nil + 19% of excess over 18,200 |
|
37,001 - 87,000 |
3,572 + 32.5% of excess over 37,000 |
|
87,001 - 180,000 |
19,822 + 37% of excess over 87,000 |
|
180,001+ |
54,232 + 47% of excess over $180,000 |
Taxpayers who are not Australian residents are taxed at different rates.
The current rates for non-residents (including the temporary budget deficit levy) for 2015-16 are:
|
Taxable income ($) |
Tax Payable ($) |
|
0-80,000 |
32.5% |
|
80,001-180,000 |
26,000 + 37% of excess over 80,000 |
|
180,001+ |
63,000 + 47% of excess over $180,000 |
The proposed tax rates for non-residents (including the temporary deficit tax) for 2016-17 are:
|
Taxable income ($) |
Tax Payable ($) |
|
0-87,000 |
32.5% |
|
87,001-180,000 |
28,275 + 37% of excess over 87,000 |
|
180,001+ |
62,685 + 47% of excess over $180,000 |
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